Payday Loans FAQ

When will you receive your Payday Loan?

Most payday loan Companies will process your loan within 30 minutes of receiving your online application. However there will be a cut off period for same day fund transfers. Most Companies will need to process your loan application before 14:30 in order to guarantee same day funding. After this time, a money transfer will take place on the next working day. Keep in mind that bank transfers cannot take place at weekends no matter how much you need the cash!

How much money can you borrow?

The amount of money that you can borrow using a payday loan can vary. Typically, loans range from £80 up to £750 for UK residents. In some cases, repeat customers may be offered a higher amount of up to £1500.  This is standard practice amongst Payday Loan Providers. Basically, your loan amount will increase once you have cleared your first loan. Like other forms of finance, completing your agreement and paying off each loan on time will improve your credit history.

What happens if you need to extend a Payday Loan repayment period?

Like all loans, if you are having problems paying you must contact your loan Company as soon as possible. Loan extensions may be granted at the discretion of the loan provider. In all cases, if a loan extension is granted, original loan finance charges will usually need to be paid first on the original due dates. You will then be contracted to for an additional loan, where you will be charged additional finance charges. Payday loan extensions are usually governed by your pay dates.

Payday loan extensions can usually be requested until 17:00 weekdays, and should be made three days (excluding weekends) before your original loan expires.

Will you need a bank debit card to take out a payday loan?

Most payday loan providers will want you to pay your loan off using a bank debit card, however most will arrange some form of direct debit in the event that you do not have a debit card.

Why Payday Loan Companies need your debit card information!

Loan Companies will use your debit card information to automatically debit your account in order to pay off your loan on the specified date. If your bank declines the payment due to insufficient funds, the payment will be re-presented.

How soon can you apply for another loan?

The fastest way to obtain a new payday loan is usually by paying your loan off by debit card! Once you have paid off your existing loan and you pay by debit card, your payment will clear in a matter of seconds. Once your payment has cleared you can then apply for a new loan immediately. In most cases, most payday loan providers will arrange funding of a new loan into your bank account on the same day.

Can you pay off your payday loan early?

Yes, all payday loan providers should allow you to pay off your loan early, after all there risk is then completely eradicated. All you should need to do is contact your loan provider by phone or email. Some payday loan Companies will provide you with a rebate of interest charges if you pay off your loan within 14 days of the original funding date.

How many payday loans can you take out at the same time?

Payday loans can only be provided one at a time and you cannot take out multiple loans. If you already have a loan, you must pay it off before applying for a new payday loan. In most cases you can request a loan extension instead of a new loan and the finance charges will be the same for either an extension or a new payday loan.

How will a Payday Loan affect your credit score?

As long as you make all your payments on time, taking out a payday loan will actually have a positive affect on your credit rating. Credit reference agencies will be informed of your timely repayments, which will improve your credit score. However, like all other forms of finance, if you fail to repay on time your credit score could be damaged.

If you have a poor credit rating at present, making regular payments on a payday loan could be a good way for you to start to improve your credit payment profile in the future.

What if you have a bad credit history?

If you have less than perfect credit history you can still apply for a payday loan. The decision to lend to you is not based on the long term like a traditional loan. Payday Loan Companies are only interested in your current circumstances and your ability to repay the loan over a very short period of time. Repaying your payday loan in a timely manner can help to build up your positive credit history going forward!

Click here to compare Payday Loans from the top Payday Loan Companies.